Infrastructure Construction Market in India 2023

Infrastructure Construction Market in India 2023

Market insights:

The construction market in India is expected to reach 117.02 Tn by 2027 expanding at a compound annual growth rate (CAGR) of 17.26% during the 2022-2027 forecast period. The Indian government emphasizes on the development of infrastructure because it is important to the country's overall development and helps ensure that world-class infrastructure is constructed on time. The construction industry of India is a major contributor towards India’s GDP, both directly and indirectly. The infrastructure construction market was valued at INR 14.61 Tn in 2021. It is expected to reach INR 42.83 Tn by 2027 expanding at a CAGR of 17.26% during the 2022-2027 forecast period. The infrastructure sector is a key driver of the Indian economy. The infrastructure sector includes construction of highways, bridges, dams, and urban infrastructure.

Market Influencers:

Market drivers:

Population and economic growth have accelerated urbanization across the country, and there are now significantly more metropolitan villages and cities. The sector has been making investments to raise living standards and advance societies to serve better to the country.

Key deterrents to the growth of the market:

Most of the laws in India require prior approval of concerned authorities to perform actions along the way for project development. The project developers or builders are forced into a vicious cycle by this unavoidable step as they chase multiple ministries and authorities to obtain clearances or approvals. Another component of the infrastructure sector is the labor force. The possibility of a labor shortage, both skilled and unskilled, is one of the main factors holding back India's infrastructure development.